There are many ways in which you can source products and services for your company, and the most trending option is sourcing products globally. This helps you in saving a lot of production money and time. If you have been considering doing so, surely you must have thought about sourcing products from China. After all, it is truly the global manufacturing hub.
Many businesses do global sourcing China, and thus increase their market by many folds. Well, if you are wondering whether this is the right choice for your company, and want to know the pros and cons of doing so, you are at the right place. Here we have discussed the advantages as well as the shortcomings of global sourcing. Keep reading to find out whether global sourcing is suitable for your business or not.
Global sourcing
Sourcing products from other countries is a strategy that has worked for many businesses. Countries like China can manufacture products on a large scale at unbelievable prices. Hence, global sourcing suits most importers. Now, to understand whether it suits your requirements or not, it is ideal to know its advantages as well as disadvantages. So, let’s start with advantages…
Benefits Of Global Sourcing
1. It always proves to be cost-effective
When you source products from China, you get products while reducing the business overheads. You need not have a manufacturing unit, worry about raw materials, fulfill workers’ demands, get government permission, or handle plenty of other tasks.
2. It saves you an incredible amount of time
Manufacturing units in China are already working and have everything in line to complete your order. They have a specialized team that will work on your products and skilled workers that already know the task. Ultimately, all you have to do is place your order.
3. You can focus better on the selling part
Once you know that your product will be ready without any delays or accidents, you can concentrate better on other areas like marketing and selling. After all, proper marketing is crucial if you want to stay in the market for long.
4. You get to sell something unique
When you work with local suppliers, all you get is something that is already in the market. However, working with manufacturers in other countries allows you to bring something new to the market.
5. The concept is suitable for new businesses
Global sourcing China proves to be the best approach for new entrepreneurs. You get more by spending less, and even if you have zero experience, working with experienced manufacturers will bridge that gap.
Drawbacks of Global Sourcing
Negotiations become difficult
When you are sourcing products from such a country that you cannot visit in person, negotiating via emails and phone calls becomes taxing. Also, language differences can create a big barrier.
Security issues
When you work with a manufacturer who is thousands of miles away, you can never be sure about how well it will go. There are good chances that you transfer funds, but never get a delivery against it.
You will have to pay transport expenses
It is not difficult to import products from foreign countries, but surely it is expensive. So, sourcing products from another country will be an added expense for your business.
You might not find the right type of customers locally
When you get a product made in a foreign country, there is always a risk of not finding the right type of buyer in your own country.
Global sourcing China is worth giving a try. However, you have to have a reliable and experienced sourcing company on your side. Your sourcing agent will help you throughout the procedure, and ensure you end up saving time and money in the process. Also, they know all the rules and regulations and thus can help you avoid all sorts of expensive mistakes.